|
BEFORE THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
|
||
|
IN THE MATTER OF THE PROMULGATION AND ESTABLISHMENT OF FIELD RULES TO GOVERN OPERATIONS IN THE CAMEO FIELD, MESA COUNTY, COLORADO |
) ) ) ) |
CAUSE NO. 159
ORDER NO. 159-5 |
REPORT OF THE COMMISSION
This cause came on for hearing before the Commission on June 15, 1981 at 9:00 a.m., in Room 110, State Centennial Building, Denver, Colorado, after giving Notice or Hearing as required by law, on the application of Dome Petroleum Corporation, for an order establishing 320-acre drilling and spacing units for the production of gas and associated hydrocarbons from the Dakota formation, and 160-acre drilling and spacing units for the production of gas and associated hydrocarbons from the Mesaverde formation underlying certain lands in Mesa County, Colorado. The application was amended at the time of the hearing to delete certain lands from the area requested to be spaced since they are included in Federal units.
FINDINGS
The Commission finds as follows:
1. Dome Petroleum Corporation, as applicant herein, is an interested party in the subject matter of the above-referenced hearing.
2. Due notice of the time, place and purpose of the hearing has been given in all respects as required by law.
3. The Commission has jurisdiction over the subject matter embraced in said Notice, and of the parties interested therein, and jurisdiction to promulgate the hereinafter prescribed order.
4. Evidence presented at the hearing indicates that the Mesaverde formation and Dakota formation each constitute a common source of supply of gas and associated hydrocarbons underlying the following described lands in Mesa County, Colorado, to-wit:
|
Township 9 South, Range 98 West, 6th P.M. |
|
Sections 29, 30, 31, 32 & 34: All |
|
|
|
Township 9 South, Range 99 West, 6th P.M. |
|
Sections 34, 35 & 36: All |
|
|
|
Township 10 South, Range 98 West, 6th P.M. |
|
Sections 5 & 6: All |
|
|
|
Township 10 South, Range 99 West, 6th P.M. |
|
Sections 1 & 2: All |
5. In order to prevent the waste of oil and gas, as defined by law; to protect the correlative rights of all parties concerned; to prevent the drilling of unnecessary wells, and to insure proper and efficient development and promote conservation of the oil and gas resources of the State, an order should be made establishing 320-acre drilling and spacing units for the production of gas and associated hydrocarbons from the Dakota formation and 160-acre drilling and spacing units for the production of gas and associated hydrocarbons from the Mesaverde formation, each a common source of supply underlying the lands defined herein. That said 320-acre drilling and spacing units should consist of the E˝ and W˝ of each section according to the governmental survey, with the permitted well locations to be alternately in the center of the north and south quarter sections with a tolerance of 200 feet for topography. That said 160-acre drilling and spacing units should consist of a quarter section according to the governmental survey, with the permitted well located in the center of the quarter section with a tolerance of 200 feet for topography. An exception should be allowed for a well to be drilled approximately 300 feet from the north line and 300 feet from the east line Section 36, Township 9 South Range 99 West, 6th P.M., and that the existing wells be considered the permitted well for the units upon which they are located. In addition, the Director, may, without additional notice and hearing grant exceptions to the permitted well location due to topography or surface hazards, provided the owners of the contiguous and cornering drilling units toward which the proposed location would be moved, file a waiver or consent in writing, agreeing to said exception.
6. All available geological and engineering data indicate that one well will efficiently and economically drain an area of approximately 320-acres from said Dakota formation, and approximately 160-acres from said Mesaverde formation, and that units of the size and shape hereinabove described are not smaller than the maximum area that can be efficiently drained by one well producing from said Dakota and Mesaverde formations.
ORDER
NOW, THEREFORE, IT IS ORDERED, that the following rules and regulations shall apply hereafter to wells drilled, completed, or recompleted in the Dakota and Mesaverde formations underlying lands in the Cameo Field, herein described in addition to other applicable rules and regulations and orders of the Commission, if any, heretofore adopted and not in conflict herewith.
Rule 1. 320-acre drilling and spacing units shall be, and the same are hereby established for the production of gas and associated hydrocarbons from the Dakota formation and 160-acre drilling and spacing units shall be and the same are hereby established for the production of gas and associated hydrocarbons from the Mesaverde formation underlying the following described lands in the Cameo Field, Mesa County, Colorado, to-wit:
|
Township 9 South, Range 98 West, 6th P.M. |
|
Sections 29, 30, 31, 32 & 34: All |
|
|
|
Township 9 South, Range 99 West, 6th P.M. |
|
Sections 34, 35 & 36: All |
|
|
|
Township 10 South, Range 98 West, 6th P.M. |
|
Sections 5 & 6: All |
|
|
|
Township 10 South, Range 99 West, 6th P.M. |
|
Sections 1 & 2: All |
Rule 2. Said drilling units for the production of gas and associated hydrocarbons from the Dakota formation shall consist of 320-acres, more or less, and consist of the E˝ and W˝ of a section according to the governmental survey, and the permitted well locations shall be alternately in the center of the north and south quarter sections with a tolerance of 200 feet for topography.
Rule 3. Said drilling units for the production of gas and associated hydrocarbons from the Mesaverde formation shall consist of 160-acres, more or less, and consist of a quarter section according to the governmental survey, and the permitted well shall be located in the center of the quarter section with a tolerance of 200 feet for topography.
IT IS FURTHER ORDERED, that an exception shall be allowed for a well to be drilled at a location approximately 300 feet from the north line and 300 feet from the east line Section 36, Township 9 South, Range 99 West, 6th P.M.
IT IS FURTHER ORDERED, that the existing wells shall be considered the permitted wells for the units upon which they are located and in addition, the Director may, without additional notice and hearing, grant exceptions to the permitted well locations because of topography or surface hazards, provided the, owners of the contiguous and cornering drilling units toward which the location is moved, file a waiver or consent in writing agreeing to said exception.
IT IS FURTHER ORDERED, that the provisions contained in the above orders and rules and regulations shall become effective/forthwith.
IT IS FURTHER ORDERED, that the Commission expressly reserves its right, after notice and hearing, to alter, amend or repeal any and/or all or the above orders, rules and regulations.
ENTERED this 14th day of July 1981, as of June 15, 1981.
|
OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
|
||
|
By |
Frank J. Piro, Secretary |